$100,000 H-1B Visa Fee Imposed by Trump Administration, Citing Disputed 36% Wage Underpayment Claims

The Trump administration has enacted a new policy imposing a $100,000 fee for new H-1B visa applicants, effective September 21, 2025. This significant change, announced via presidential proclamation, aims to curb alleged abuses within the program and protect American workers. The administration cited a study from the Economic Policy Institute (EPI) claiming a "36 percent discount for H-1B 'entry-level' positions" as justification for the measure.

The proclamation, signed by Donald Trump on September 19, 2025, states that the H-1B program has been "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor." It further directs the Department of Labor to revise prevailing wage levels to align with the policy's goals. U.S. Commerce Secretary Howard Lutnick indicated the fee is designed to make it uneconomical for companies to train foreign workers over Americans.

However, the research underpinning this decision has drawn sharp criticism. Connor O’Brien, a Research and Policy Analyst at the Economic Innovation Group (EIG), publicly challenged the methodology. Responding to a post by EIG colleague Sam Peak, O'Brien stated, > "The research Sam highlights here is shockingly dishonest. Designed to go viral and hope nobody looks under the hood. The assumption that there is one fair market wage for every occupation — whether you are a fresh graduate or a 30-year veteran — is obviously wrong."

The Economic Policy Institute, identified by O'Brien as the source of the criticized research, has consistently published analyses highlighting wage suppression in the H-1B program. EPI's findings, such as 60% of H-1B jobs being certified below local average wages in 2019, suggest systemic issues. The institute argues that the program's structure allows employers to underpay migrant workers, thereby undermining wages and working conditions for both H-1B and U.S. workers.

The new $100,000 fee is anticipated to face legal challenges and significantly impact the technology sector, which heavily relies on H-1B visas. This policy shift underscores ongoing debates about immigration's role in the U.S. labor market and the methodologies used to assess its economic effects.